What’s the Difference Between a Balcony, Terrace & Verandah?

With its mix of modern architecture and heritage homes, outdoor spaces like balconies, terraces, and verandahs play a crucial role in enhancing lifestyle and property value.

But while these terms are often used interchangeably, they refer to distinct structures, each with unique characteristics and purposes.

Choosing the right outdoor structure can be confusing, especially when considering Melbourne’s diverse architectural styles, climate conditions, and personal lifestyle needs.

In this article, we’ll explore a brief overview of each structural option, comparisons (including size, functionality and cost), and design and installation factors to consider before making a final choice.

Read on for a clear understanding of which outdoor space suits your home and lifestyle best.

Balcony

A balcony is an elevated platform attached to an upper floor of a building, providing an outdoor extension of an interior space. It is typically enclosed by railings or balustrades and accessed through a door from an interior room. 

Balconies come in various sizes and designs, from compact Juliet balconies to spacious wraparound styles. They are common in urban areas and apartment complexes, where ground-level outdoor space is limited.

Pros

• Maximises Space in Urban Areas: Since balconies extend from an upper level, they make use of vertical space, providing an outdoor retreat without taking up land.
• Offers Private Outdoor Access: Unlike shared outdoor spaces, balconies provide a personal, enclosed area for relaxation.
• Ideal for Small-Scale Gardening: Many homeowners use balconies for potted plants, vertical gardens, or even small herb gardens.
• Enhances Property Value: A well-designed balcony adds appeal to apartments and homes, making them more attractive to buyers.

Cons

• Limited Space: Balconies are generally small, restricting their functionality for large gatherings or extensive outdoor activities.
• Exposure to Weather Conditions: Being open on all sides, balconies offer little protection from wind, rain, or extreme sun.
• Structural and Maintenance Costs: Balconies require strong structural support, and regular maintenance is needed to prevent wear from weather exposure.

A terrace is a flat, open outdoor space that can be located at different levels, including rooftops or ground floors. It is larger than a balcony and may be attached to a building or stand-alone.

Terraces are versatile, allowing for multiple uses such as entertaining, gardening, or outdoor dining. Many terraces incorporate pergolas, seating areas, and planters, making them functional extensions of the home.

Pros

• Spacious and Versatile: Terraces provide a generous outdoor area for dining, entertaining, or relaxation.
• Can Be Customised: Unlike balconies, terraces offer the flexibility to add furniture, green spaces, and decorative elements.
• Better Airflow and Comfort: With more open space, terraces allow for better ventilation and less heat buildup compared to enclosed balconies.
• Adds Significant Property Value: A well-designed terrace can be a major selling point, increasing a property’s appeal and market price.

Cons

• Requires More Space: Not all homes can accommodate a terrace, especially in compact urban settings.
• Higher Maintenance Needs: With more surface area, terraces require regular cleaning and upkeep, especially if they include landscaping elements.
• Can Be Costly to Construct: Building a terrace, especially on a rooftop, involves higher construction and waterproofing costs.

It is a covered, open-air structure that typically extends along the front or sides of a house. It is located at ground level, providing a shaded outdoor space that connects seamlessly with the home. 

They are common in traditional Australian architecture, particularly in heritage and Federation-style homes. They offer protection from weather conditions while maintaining a strong indoor-outdoor connection.

Pros

• Provides Shade and Weather Protection: Unlike balconies and terraces, they offer shelter from sun, rain, and wind.
• Enhances Outdoor Living: They create a comfortable space for seating, dining, or socialising while staying protected.
• Classic and Timeless Appeal: It enhances a home’s aesthetic, particularly in traditional or heritage-style properties.
• Lower Maintenance: Since they are partially enclosed, they are less exposed to harsh weather compared to balconies and terraces.

Cons

• Limited Privacy: Being at ground level, they are more visible to neighbours and passersby.
• Requires Additional Space: It takes up ground area, making it less practical for smaller properties.
• Potential for Weather Damage: Though covered, they can still be affected by strong winds, especially in Melbourne’s unpredictable climate.

Location and Elevation

• Balcony – Always elevated and attached to an upper floor, offering views and privacy. Common in apartment buildings and townhouses where ground space is limited.
• Terrace – Can be at various levels, including ground floors, rooftops, or stepped into a landscape. Rooftop terraces provide city views, while ground-level terraces extend the home’s footprint.
• Verandah – Always at ground level, extending along the front, back, or sides of a home, offering a shaded and welcoming entrance.

Design and Structure

• Balcony – Compact and supported by brackets, cantilevers, or columns. Typically enclosed by balustrades for safety.
• Terrace – Larger and open, often featuring fencing, pergolas, seating, and greenery. Ground-level terraces may include paving or decking.
• Verandah – Covered structure that provides shade and weather protection. Often wraps around part or all of the home, blending seamlessly with the main building.

Functionality and Use

• Balcony – Acts as a private retreat, perfect for small seating areas, plants, or even a workspace. Best for upper-floor rooms needing outdoor access.
• Terrace – Designed for entertainment, relaxation, and multi-purpose use, such as gardening, BBQs, and outdoor dining. Rooftop terraces are ideal for city homes with limited backyard space.
• Verandah – A transitional space between indoors and outdoors, often used for lounging, welcoming guests, or as an extension of the living space.

Cost

• Balcony – Moderate cost, but depends on materials, support structure, and balustrades.
• Terrace – Expensive, especially for rooftop terraces requiring waterproofing and structural reinforcement.
• Verandah – Moderate to high, depending on size and materials. Timber verandahs can be more costly than simpler designs.

Durability and Lifespan

• Balcony – Prone to weather exposure and potential water damage if not well-maintained. Regular repainting and sealing are required.
• Terrace – Can last decades but requires frequent maintenance, especially for roof waterproofing and flooring materials.
• Verandah – Highly durable, especially when built with weather-resistant materials like timber, brick, or concrete. Less exposed to extreme weather.

Aesthetics

• Balcony – Often has a modern and sleek look, adding character to apartments and contemporary homes.
• Terrace – Provides a luxurious and spacious feel, especially when designed with furniture, greenery, and decorative elements.
• Verandah – A classic and welcoming feature, particularly in traditional or heritage-style homes.

Environmental Impact

• Balcony – Limited eco-friendly features, as small spaces restrict green installations.
• Terrace – Offers potential for sustainable design, including green roofs, planter boxes, and water-saving irrigation.
• Verandah – Often built from natural materials and provides shade, reducing heat absorption and improving energy efficiency.

Balcony: The Best Choice for Apartments and Multi-Story Homes

A balcony is ideal for properties with limited ground space, such as apartments, townhouses, or multi-level homes. It provides a compact yet functional outdoor retreat, perfect for enjoying fresh air, morning coffee, or a small garden.

• Apartments and High-Rise Buildings – Balconies offer residents private outdoor areas without requiring a backyard.
• Multi-Story Homes – Great for adding an elevated space to enjoy nature, especially in homes with upper-level bedrooms.
• City Living – Provides panoramic views and natural ventilation, making small urban spaces feel more open.
• Personal Relaxation Zone – Ideal for creating a peaceful retreat, complete with a chair, small table, and potted plants.

Best for: Homeowners who want a small, private outdoor space without taking up land.

Terrace: The Perfect Fit for Rooftops and Urban Townhouses

A terrace works best for urban homes, rooftop spaces, or properties with extra outdoor square footage. It serves as a versatile, open area that can be used for entertaining, gardening, or relaxation.

• Townhouses and Rooftops – Ideal for creating an entertainment space in densely populated areas.
• Outdoor Dining and Lounging – Offers enough space for outdoor furniture, BBQs, and social gatherings.
• Green Roofs and Sustainable Homes – Many terraces are used for urban gardening, solar panel installation, or eco-friendly landscaping.
• Flexible Design Possibilities – Can be customised with pergolas, lighting, outdoor kitchens, and fire pits.

Best for: Homeowners who want a multi-functional outdoor space for gatherings, relaxation, or sustainability projects.

Verandah: The Ideal Outdoor Living Space for Traditional and Suburban Homes

This is a classic addition to Australian homes, providing a sheltered outdoor area that enhances both aesthetics and functionality. It’s particularly popular in suburban, heritage, and rural properties, where space is more abundant.

• Traditional or Suburban Homes – Complements classic home designs and adds to street appeal.
• Welcoming Entrance Spaces – Acts as a shaded, stylish entryway that enhances curb appeal.
• All-Weather Outdoor Living – Provides a protected area for outdoor seating, even in Melbourne’s unpredictable climate.
• Family and Social Gatherings – Perfect for hosting guests, relaxing with family, or setting up a kids’ play area.

Best for: Homeowners who prefer a covered, comfortable outdoor space that integrates seamlessly with the home.

Building Permits and Council Regulations

In Melbourne, most outdoor structures require council approval to ensure they meet building codes and zoning laws. The key considerations include:

• Balconies – This may require structural engineering approval to confirm load-bearing capacity.
• Terraces – Often require planning permits, especially for rooftop designs that may affect neighbours’ privacy.
• Verandahs – This may need development approval, depending on size and location.

Each local council has specific guidelines, so it’s important to check with your local authority before starting construction.

Heritage Restrictions for Verandahs

Melbourne is home to many heritage-listed properties, particularly in suburbs like Fitzroy, Carlton, and South Melbourne. If your home is heritage-listed, you must:

• Obtain heritage permits.
• Use historically accurate materials and designs to maintain the property’s character.
• Follow preservation guidelines set by the Heritage Victoria department.

Failure to comply with heritage laws can result in fines or forced removal of unauthorised structures.

Strata Rules for Apartment Balconies

If you live in an apartment or townhouse complex, your balcony may be subject to strata regulations, which govern:

• Balcony modifications – You may need body corporate approval to change the flooring, install awnings, or add privacy screens.
• Usage restrictions – Some apartments restrict BBQs, drying laundry, or excessive decoration on balconies.
• Structural integrity requirements – Owners may be responsible for waterproofing maintenance, depending on the strata agreement.

Always review your building’s strata bylaws before making any changes to your balcony.

Which Option Is Best for You?

• If you live in an apartment, check the strata bylaws before modifying your balcony.
• If you want a rooftop terrace, ensure you meet waterproofing and structural safety requirements.
• If your home is heritage-listed, a verandah must comply with historical preservation laws.

Understanding these regulations will help ensure your outdoor project is legally compliant and avoids unnecessary costs or penalties.

Choosing the perfect balcony, terrace, or verandah is a significant investment in your home’s comfort, style, and functionality.

With so many factors to consider—from design and cost to council regulations and maintenance—making the right choice can feel overwhelming. That’s where we can help.

With years of industry expertise and a reputation for excellence, we specialise in crafting high-quality, tailor-made outdoor spaces that enhance your home and lifestyle.

Get in touch today on 1300 724 118 or claim your fast and FREE quote online now!